Office take-up in Dublin leapt by 26% year-on-year in the first three quarters of the year, according to data from Knight Frank.
The technology media and telecoms industries accounted for 43% of activity, followed by financial services.
The surge in demand, coupled with a shortage of supply, pushed rents in the third quarter up by 22% on the same period in 2014 to €55 (£40m) per sq ft, the second-highest growth of any city in Europe, behind only Madrid.
Knight Frank expects the supply shortage to lead to a temporary fall in take-up next year.
However, 500,000 sq ft of space is due to complete in the first half of 2016.
Declan O’Reilly, director, Knight Frank Ireland, said: “While some of the REITs and Irish pension funds have the ability to develop from their own resources, the lack of funding for speculative development will ensure that Dublin avoids the potential for oversupply over the next few years.
“Also it should be noted that even though rents have grown considerably over the past 24 months, they are still only getting back to where they were about 10 years ago.”
